The cost to a competitor is in getting a user to switch. Think of it in terms of paying users: how much would you have to pay someone to switch from Youtube to your site? Multiply the average by the number of users, and that's the advantage Youtube has over competitors.
> The cost to a competitor is in getting a user to switch.
Only if we're assuming that users and uploaders will only ever use exactly one service at any given time. No reason why that needs to be the case; nothing stopping people from uploading to YouTube and Vimeo and Twitch and DailyMotion and PornHub and LBRY and PeerTube and whatever other platforms, and nothing stopping people from viewing from those platforms, either.
Suppose YouTube disappeared tomorrow. Where would everyone go? Probably odysee. So why don't they go there now? That's why Youtube is a natural monopoly.
I named multiple said competitors. And they seem to get plenty of traffic themselves.
> So why don't they go there now?
Do people know about odysee? First I've heard of it (to my recollection at least).
The problem here is in the network effect, not in scarcity.
The cost to enter the video sharing market is extremely low, especially in this day and age where you can rent computing and storage capacity on the cheap around the world.
The reason I ask is because, despite all its flaws, YouTube is one of the treasures of the internet. And I wonder if we'd lose it by breaking up Alphabet.
I am not pro-Alphabet and 100% believe Alphabet needs more regulation, and quite frankly does need some trust busting, but I'd be really sad to lose YouTube. Yeah, there's vimeo but it's clearly not a direct competitor. I also fondly remember stage6 (https://en.wikipedia.org/wiki/Stage6).
However as I understand it the product itself isn't tied to the Google infrastructure. YouTube's main value is the user base, both of viewers and of publishers. It would be a technical marvel to move it off of Google's infrastructure however I don't think that there is any feature that they wouldn't be able to provide anymore. It would certainly be more expensive, but at YouTube's size you could probably work out similar deals with other providers (or with GCP) so I'm not sure that the prices would rise that much. (IDK, maybe 15% increase in cost between provider cut and raw cost increase?)